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Define positioning.
Establishing how customers perceive a business or product relative to competitors.
How does customer service affect a company's image?
Consistently excellent service builds reputation and loyalty and differentiates the business, while poor service damages its image.
How is customer service linked to word-of-mouth promotion?
Satisfied customers become advocates who recommend the business, while dissatisfied customers share negative experiences.
Define unique selling proposition (USP).
A distinctive feature or benefit that sets a business's product apart from competitors and gives customers a reason to buy.
Give an example of a USP.
A bakery that guarantees delivery within one hour.
How does a business identify its USP?
Analyze competitors, determine customer needs, evaluate its own strengths, and find a unique benefit that competitors cannot easily copy.
How do brand identity and brand image differ?
Brand identity is what the company wants to project. Brand image is how customers actually perceive the brand.
Name three branding strategies.
Individual brands (each product has its own name), family brands (multiple products under one name), and private label brands.
Name ways to build a product or service brand.
Consistent quality and messaging, a distinctive logo and packaging, positive customer experiences, and a visible advertising and social media presence.
Define promotion.
Any form of communication used to inform, persuade, or remind target audiences about a business or its products.
Name the elements of the promotional mix.
Advertising, personal selling, sales promotion, and public relations.
What are the three main objectives of promotion?
To inform, to persuade, and to remind.
Define advertising media.
The channels used to deliver advertising messages to an audience.
Name major types of advertising media with examples.
Print (newspapers, magazines), broadcast (television, radio), digital (websites, social media, search ads), and outdoor (billboards, transit).
What factors affect the choice of advertising medium?
Target audience, budget and cost, reach and frequency, the nature of the message, and competition.
Define word-of-mouth marketing.
Informal communication in which customers recommend a business or product to others.
Name word-of-mouth channels.
Personal conversations, online reviews, social media sharing, referral programs, testimonials, and influencers.
Define direct marketing.
Communicating directly with targeted individuals to obtain an immediate response, without intermediaries.
Name direct marketing channels.
Direct mail, email, telemarketing, text messages, catalogs, and direct-response television.
Define sales promotion.
Short-term incentives that encourage the purchase of a product or service.
Name examples of consumer sales promotions.
Coupons, rebates, samples, contests, loyalty programs, premiums, and buy-one-get-one offers.
What are trade promotions and which channels deliver them?
Promotions aimed at channel members, such as trade allowances, discounts, cooperative advertising, displays, and trade shows.
Define public relations.
A management function that builds and maintains favorable relationships between an organization and its publics.
Name communications channels used in public relations.
Press releases, press conferences, news media, newsletters, the company website, social media, events, and speeches.
Name types of public relations activities.
Sponsorships, community events, press releases, charitable giving, cause marketing, crisis communication, and speeches. Activities that relate to the target audience on a mass scale generally qualify.
What is cause marketing?
A collaboration between a for-profit business and a nonprofit cause that benefits both.
How does publicity differ from advertising?
Publicity is unpaid media coverage, while advertising is paid and controlled by the sponsor.
Define selling.
Personal communication with customers to determine their needs and match them with products that satisfy those needs, resulting in a sale.
How do inside salespeople differ from outside salespeople?
Inside salespeople sell from within the business (in-store, by phone, or online). Outside salespeople visit customers at their locations.
What is included in the scope of the selling function?
Inside and outside salespeople working with the typical customer, pricing, and marketing activities that support sales.